Sackers comments on EAC recommendation to seek member views on ESG

Stuart O’Brien, partner, comments on the EAC’s recommendation in its latest report, “Greening Finance“, for a change in the law to “require pension fund fiduciaries to actively seek the views of their beneficiaries when producing their statement of investment principles or investment strategy statements”.

Expressing concern over the lack of differentiation between DB and DC schemes, O’Brien comments that while actively seeking members’ views may work in a DC context, that the recommendation “muddies the waters for DB, because you’ll end up with trustees further conflating members’ ethical views with the trustee job of taking account of financially relevant factors”.

Read further comments in the articles in Pensions Expert and IPE.



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